LG closing its mobile phone business globally to focus on growth sectors

The decision was approved by the company's board of directors earlier today and the shutting down of the mobile business is expected to be completed by July 31, 2021. However, inventory of some existing models may still be available after the closure of the mobile phone business unit, LG said in a statement on Monday.

LG Electronics on Monday confirmed that it is winding down its mobile phone business operations worldwide. With this, the South Korean technology giant will step away from phone manufacturing and sales.

The decision was approved by the company's board of directors earlier today and the shutting down of the mobile business unit is expected to be completed by July 31, 2021. However, inventory of some existing models may still be available after the closure of the mobile phone business unit, LG said in a statement on Monday.

LG will continue to provide service support and software updates for existing customers for a period of time which will vary by region. The company will also work with suppliers and business partners throughout the closure of the mobile phone business.

LG says the decision will help it focus on growth sectors including electric vehicle (EV) components, connected devices, smart homes, robotics, artificial intelligence (AI) and business-to-business solutions, as well as platforms and services.

In 2020, LG reported revenues of KRW 5.22 trillion (USD 4.66 billion) and an operating loss of KRW 841.20 billion (USD 750.63 million). In the fourth quarter of 2020, LG's mobile phone sales were 9.2 percent lower than the previous quarter due to shortages of 4G chipsets and sluggish sales of premium smartphones in overseas markets.

"Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas. Core technologies developed during the two decades of LG's mobile business operations will also be retained and applied to existing and future products," the company said.